Uncertainty abounds over the implications of Brexit on trade and investment, leading different businesses to react differently in their preparation for the UK’s scheduled March 2019 departure. Pending concrete results from the ongoing UK-EU negotiations, Hong Kong companies are advised to thoroughly review the extent to which Brexit is going to impact on their overall business interests across the EU and take appropriate precautionary measures. More

The signing of Investment Agreement and the Ecotech Agreement has turned CEPA into a full-fledged FTA, on the one hand providing greater clarity on protection of investment in services sectors, non-services and other classes of assets between Hong Kong and the mainland, and on the other, encouraging Hong Kong companies to participate in key national development strategies like the Belt and Road Initiative. More

China is now the world’s second largest sources of FDI after the US. About 60% of the mainland’s outbound FDI flows to Hong Kong, and most of this is subsequently channelled overseas through Hong Kong’s service platform. As the mainland accelerates its pace of “going out” and advances the Belt and Road development strategy, its outward FDI activities will continue to expand. This will provide more business opportunities for professional service suppliers in Hong Kong. More

The removal of many international sanctions on Iran in early 2016 looks certain to boost the country’s economic prospects. Enhancement of the investment climate in the medium-term notwithstanding, Hong Kong companies should take note of many western companies’ lingering concerns over the persisting “primary sanctions”, and the practical difficulties of doing business in the post-sanctions era. More

China continued to be the world’s third-largest source of FDI for the fourth consecutive year in 2015, as Chinese enterprises are going out to look for resources to boost their competitiveness, and to tap business opportunities in Belt and Road markets, especially the Southeast Asia. Such enterprises are most interested in going to Hong Kong to seek professional services and business partners to support their outbound investment activities, as revealed by a recent HKTDC survey. More

Maharashtra has the largest economy and is the top foreign direct investment (FDI) recipient of all of India’s states, making it a strong candidate as a location for Hong Kong manufacturers to relocate their labour-intensive factories. As India’s second-most populated state, Maharashtra has an abundant supply of labour. Furthermore, the state government is trying to attract foreign manufacturers by offering various incentives under the “Make in Maharashtra” campaign. More

As a leading industrial state in India, Gujarat offers a favourable environment for Hong Kong manufacturers to relocate their labour-intensive factories. Aside from ranking top among Indian States in the World Bank’s Ease of Doing Business survey, the Gujarat government’s promotion of textiles and electronics manufacturing should be welcomed by Hong Kong manufacturers. The state’s improving infrastructure is another advantage for those seeking an alternative production base in India. More

With a large supply of young workers, geographical advantages, and a pro business government, India offers good potential for Hong Kong manufacturers considering the relocation of labour-intensive, China-based factories. This article provides an introduction of India’s business environment, its suitability as an alternative production base for export-processing, and the added advantage of its huge domestic market. More